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Unitech resolution proposal promises to complete all stuck projects within 5 years

Unitech resolution proposal promises to complete all stuck projects within 5 years

Unitech resolution proposal promises to complete all stuck projects within 5 years
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By Yash Jain  Jul 21, 2020 2:21:54 PM IST (Published)

Supreme court appointed Unitech board has submitted a resolution plan for the company.

Supreme court appointed Unitech board has submitted a resolution plan for the company. What would come as a major relief to 15,000 home buyers awaiting the possession of their homes would be that the resolution proposes will complete all incomplete dwelling units between 1 to 5 years of time. Unitech would require approximately Rs 5,000 crore to complete approximately 14,500 incomplete dwelling units.

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The amount required for the construction of the incomplete dwelling units would be raised through the sale of land parcels owned by the company as well as the unsold inventory lying with the company.
As per the resolution plan, United has land parcels of approximately Rs 6,000 crore and an unsold inventory of approximately Rs 3,000 crore.
Also, the resolution submitted by the board of Unitech has sought a waiver of Rs 5,500 crore of interest and penalty charged by Noida Authority.
According to reports the company owes Noida Authority around Rs 8,000 crore out of which around Rs 5,000 crore is interest and penalties for delayed payment.
Unitech through its resolution proposal has also sought some time protection when it comes to payment of dues to lenders. According to reports, Unitech owes approximately Rs 5,000 crore to its various lenders.
Supreme Court in January, approved the nomination of seven directors to the board of Unitech.
Board members approved by Supreme Court includes A K Mittal, former CMD of National Buildings Construction Corporation (NBCC), Renu Sud Karnad, Chairman of HDFC Credila Finance Service, Jitu Virwani, CMD of Embassy Group and Niranjan Hiranandani, Managing Director of Hiranandani Group. Prabhakar Singh, Director General, CPWD and Girish Kumar Ahuja were also appointed as directors by the court.
B Sriram, Former MD and CEO of IDBI Bank has also been appointed as the director on the board of Unitech.
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